Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: Adenovir Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121333  
Subject: Large JTWROS Account Date: 8/21/2003 10:36 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I've read through the last year or so of this board, and the inheritance strategies board, but haven't seen the answer to my question...

My 68 year old father is very frugal. He reminds me of those people who pass away and leave a staggering amount of money to charity, while never showing any signs of the wealth they had. He has been divorced since 1973. He refuses to make a will, probably because he doesn't want to pay a lawyer or have anyone pay a lawyer for him. About 5 years ago, after a sudden illness ( with a full recovery), he told me that his non-IRA account was listed as JTWROS with mine and my brother's name. He said that this would avoid any problems with probate when he passes away. Very recently he told me how much the account is worth and it was a real shocker, around $1.5 million! The more I think about this, the more questions I have. He doesn't want to hear them, and I really don't want to bug him about this any more than I already have. I have several questions:

1. Do we (my brother and I) have any tax liability for capital gains and dividends on this account? I'm sure that he has been taking care of any taxes due on the proceeds, but don't some of those tax liabilites belong to us?

2. Any suggestions on how to re-approach this with our father without sounding greedy (maybe the taxation issue will re-open the dialog).

3. If he changed the status to JTWROS when there was a significant amount of money in the account, can gift tax be due?

I guess this problem falls in the category of "good problems to have" but I would like to handle it in the most up-front and legal manner.

TIA

Adenovir
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Ringing the NASDAQ Bell
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement